31st March 2014

BBA launches major new work on digital banking

Millions of people, billions of transactions: Britain embraces a banking revolution

Mobile phone banking transactions made by British customers have nearly doubled in a single year, new industry figures compiled by the BBA show today.

Customers are now making more than 5.7million transactions a day using smart phones and other internet-enabled technology.

The findings feature in the BBA’s opening Way We Bank Now study, a series of publications highlighting how Britain is embracing a range of easy-to-use technology that connects banks to their customers more closely than ever before.

The initial report shows that customers of the five biggest retail banks have:

  • Downloaded more than 12.4million bank apps
  • Used their mobile phones for 18.6million transactions a week in 2013 – up from 9.1million in 2012
  • Made nearly 40million mobile and internet transactions a week in 2013
  • 28.4million debit and credit cards fitted with contactless technology
  • Signed up to receive more than 457.7million SMS balance alerts and other text messages during 2013.

Anthony Browne, Chief Executive of the BBA, said:

“A revolution is underway in how people spend, move and manage their money. This is not just about the phenomenal growth of mobile banking, which has already allowed millions of British customers to make billions of transactions from the palm of their hand.

“Consumers are also rushing to use contactless cards, text alerts and a range of other easy-to-use technology. This is innovation that connects us more strongly to our banks than ever before and gives us greater freedom to handle our money wherever and whenever we please.

“Make no mistake, the branch will remain integral to banking services in the 21st century – especially for those big moments in life such as arranging a mortgage. But the day-to-day use of branches is falling and part of that is because there is a groundswell of people who now find that banking on the move is fast, easy and convenient.”

For more information please contact the BBA press office on 020 7216 8989 or visit www.bba.org.uk/waywebanknow

Notes to editors:

Press contacts for members that have contributed to the Way We Bank Now report are as follows:

Barclays: Carey Withey, 020 7114 3527, carey.withey@barclayscorp.com

HSBC: Emma Fahy, 020 7992 1574, emma1.fahy@hsbc.com

Lloyds Banking Group: Laura Ellman, 020 7356 2200, laura.ellman@lloydsbanking.com

RBS Group: Sarah Binnie, 0131 626 6964, sarah.binnie@rbs.co.uk

Santander: Andy Smith, 020 7756 4212, andy.g.smith@santander.co.uk

The initial Way We Bank Now study includes a range of statistics from BBA members about the take-up of consumer-friendly banking technology.

Mobile banking

  • RBS Group’s banking app has already had more than 1billion log-ins
  • Santander saw a 40 per cent increase in downloads of its mobile banking app between 2012 and 2013
  • The average Barclays customer uses mobile banking 24 times per month
  • RBS Group expects that 4million of its customers will be using its app by the end of this year – an increase of 1million in just 12 months

Internet banking

  • Around 750,000 Santander customers log-on to use internet banking every day
  • 5.6 million RBS Group customers now bank online – a figure equivalent to the population of Denmark
  • 72% of all interactions between HSBC and its customers are now by telephone or through the internet

Text alerts

  • Lloyds Banking Group customers signed up to receive 302million text message alerts last year
  • 64 per cent of texts alerts received by HSBC customers warned that a balance had dropped below a point specified by the customer

Contactless payments

  • Lloyds Banking Group expects to see a 10 per cent monthly growth in payments with contactless cards this year
  • 4.5million HSBC credit and debit cards are now fitted with contactless technology
  • There were 14million payments made with RBS Group contactless cards last year. This year that number is expected to rise to 44 million – increasing to 250 million by 2023

Branch of the future

  • Barclays finds it takes 3 minutes to open an account on one of its in-store iPads – compared to up to 60 minutes on one of its PCs
  • Barclays now has 5,000 Digital Eagles, staff trained to help customers harness new banking technology
  • 97 per cent of all HSBC cash withdrawals are now made via a cash machine